Life Insurance? Advice needed

[cwoj]

Hello

I am looking for some advice on behalf of my father. Last year he got quite ill with a puncture in his large bowel and subsequently had his intestine removed. This resulted in him spending 5 months in hospital and two weeks in the intensive care unit. Since that time he has lost quite a bit of weight but pulled through and is home and well. Last week his sister in law died at 49 following full multiple organ failure. So now at 56 hes thinking about taking out some life insurance / assurance cover so that should he die it covers his funeral costs, pays his debts and leaves some cash for his Grandchildren (8 of them).

I have told him that I doubt that he would be able to get any cover at all, but he seems to think that you can get policies that don’t involve a medical and that you can have multiple policies running eg two of them?

Does anyone know what his options are? Whats the difference between life insurance and assurance? Should you try for a straight forward policy or get a couple of the guaranteed acceptance ones? I have heard of stories where companies rip people of with policies which are worthless so I would rather he go for a sensible option given his age and condition?

Thanks

Chris

[Bookworm]

Whats the difference between life insurance and assurance?

Insurance covers you against a possibility, assurance against the unavoidable.

No medical is one thing, but I'll bet you that they will still want to know about relevant PMH, and will exclude certain conditions.

[cwoj]

Thanks

[gizmo111]

Originally Posted by cwoj

Hello

I am looking for some advice on behalf of my father. Last year he got quite ill with a puncture in his large bowel and subsequently had his intestine removed. This resulted in him spending 5 months in hospital and two weeks in the intensive care unit. Since that time he has lost quite a bit of weight but pulled through and is home and well. Last week his sister in law died at 49 following full multiple organ failure. So now at 56 hes thinking about taking out some life insurance / assurance cover so that should he die it covers his funeral costs, pays his debts and leaves some cash for his Grandchildren (8 of them).

I have told him that I doubt that he would be able to get any cover at all, but he seems to think that you can get policies that don’t involve a medical and that you can have multiple policies running eg two of them?

Does anyone know what his options are? Whats the difference between life insurance and assurance? Should you try for a straight forward policy or get a couple of the guaranteed acceptance ones? I have heard of stories where companies rip people of with policies which are worthless so I would rather he go for a sensible option given his age and condition?

Thanks

Chris

He is probably thinking of the guaranteed over 50 plans that are available - you pay for a guaranteed sum on death - and provided you live longer than 2 years then your family can claim if you die within the 2 years then you claim back some or all of the premiums paid. For example with Liverpool Victoria for £50 a month he would be guaranteed around 11500 payout - probably not the cheapest way of insuring yourself but has no medical. Loads of other companies do simialr, just know this one as it is what my dad has. 50 Plus Plan - Further Details

[cwoj]

I have never heard of them, have they got a good track record, am just worried that my dad will get ripped off by a company that either never pays out or was dodgy to start with.

[gizmo111]

Originally Posted by cwoj

I have never heard of them, have they got a good track record, am just worried that my dad will get ripped off by a company that either never pays out or was dodgy to start with.

Well I don't know about paying out yet! They are old insurance company - do a search andyou will find loads thibnk sun life are another, that do over 50's

[cwoj]

thanks, i think the liverpool and victoria look like the one.

[asd120273]

I work for an insurance company and let me give you a little bit of advice. The chances are that if he wants a life policy he will have to fill out a medical questionaire. Make sure he puts everything down about his medical history and family medical history. Otherwise this is known as non-disclousre, a lot of insurance companies these days may not ask for a medical when taking out the policy and will not even request a doctors report at the start, however, if a claim is made, then they start looking into the medical history. If there is something mentioned on your medical notes at your doctors surgery that was there when you applied for the policy and you have not mentioned on the original application, the claim will be rejected and there is very little you can do.

Hope this helps.

[cwoj]

Yes, but would that apply of your going for an over 50 policy with guaranteed acceptance? I mean he has no reason to lie as they are guaranteeing that they will accept the policy?

I don’t even think that they ask any medical questions?

[asd120273]

Trust me it is always better to tell insurance companies everything. I have heard stories of claims for cancer being turned down because someone did not disclose a totally unreleated back problem. If in doubt tell them anyway, most of the time it does not affect the premium that much to be honest.

[ian cognito]

My father-in-law took out one of these plans with sun life, they don't ask for medical details and when he died they paid out with no trouble, he had leukeamia when he took out the plan.

Only thing is they tend to be expensive, I worked out that we got back almost exactly what he had paid in, if he had lived longer, it could have cost him a lot of money as after a while you start to lose out.

I can dig out the details for you if you want more info.

[cwoj]

Janquinny, if you could do that it would be great. Thanks

[cwoj]

Originally Posted by asd120273

Trust me it is always better to tell insurance companies everything. I have heard stories of claims for cancer being turned down because someone did not disclose a totally unreleated back problem. If in doubt tell them anyway, most of the time it does not affect the premium that much to be honest.

Thanks for the advice, i will tell them everything

[asd120273]

Glad I could be of service. I have seen too many people be caught out when they try to claim.

[ian cognito]

Got it! glad I never throw anything away!

he took out the plan in October 1997, paid £42.00 per month, died June 2001 so he paid in over £2300 and only got £1470 back - I was wrong, thought it was closer than that, given that, probably not worth taking this out! especially for someone in their 50's with reasonable health!

[cwoj]

thanks for finding it for me and all the info.

[ian cognito]

No probs but I'd pass on that one if I were you!!